Do car dealers care about KBB when valuing a trade?
By Cars & Motorcycles on Feb 21, 2009 with Comments 5
jambam asked: I get the feeling that dealers have there own way of valuing a trade in. Is the true from your experience?
Thanks
Filed Under: Car Care
About the Author:
You’re a smart man and absolutely correct. I’ve had my own lot, was the appraiser at a dealership, and have been a buyer for dealers. Kelly Blue Book is for amatuers. When I had my own lot I would print out KBB wholesale and tape it on the window as the retail price and make a good profit doing it. Dealers use primarily auction reports, secondly Black book or Edmonds or Galves. But most important is the knowledge of deductions for condition and mileage. No book can correctly address that. It’s know how.
Not really. Most dealers use Manheim Auction (MRM) for used car evaluation. This tells them what they can sell it for if they decide to wholesale it out. My dealership only uses KBB at the customer request…..and then only gives a fair-good rating……..NO CAR is ever excellent!
No, but KBB is the easiest scale that the consumer has on his computer. You show up at the dealer with a KBB price, they will tell you they use the black book, etc. or anything else to throw you off base and keep you confused on price. They claim they have mark-up including, advertising, cosmetic fixes, taxes, etc.and I believe that, but it’s still apples to oranges and the consumer gets screwed on trade-ins.
If you want to fully understand how dealers appraise a vehicle go to this link on my website free info with no string attached
KBB is only a price guide, It’s like buying a book on the value of Antiques or Baseball cards. These guide books are good for a reference but they have very little to do with the everyday buying and selling of goods.
I’ve never seen a dealer use KBB to provide a value of a trade in. They know what the wholesalers are looking for and what they will pay. After they figure in a nice profit for themselves, that is what they will offer you.